IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v380y2025ics0306261924024103.html
   My bibliography  Save this article

Reversing climate policy stereotypes: Evidence from an energy-dependent region and China's major economic circles

Author

Listed:
  • Zhang, Jinbo
  • Meng, Haoyun
  • Chen, Liu
  • Zhang, Yang
  • Fu, Zhenghui
  • Xie, Yulei
  • Guo, Huaicheng

Abstract

Achieving decarbonization and industrial transformation in typical energy-dependent regions is a crucial step in mitigating regional climate change. This study constructed a factorial carbon policy equilibrium effect model (FCEE) that integrated input–output analysis, a computable general equilibrium model, factorial analysis, multi-regional input–output, and ecological network analysis. This work explored the internal impact of a composite carbon tax policy that considered the endogenous driving forces of the socioeconomic system on Shanxi Province, a typical energy-dependent region in China, as well as the cascading external effects on China's major economic circles. A significant interaction was found between carbon tax policy, production efficiency progress, and emission efficiency progress, confirming advantage of the composite policy in terms of the environmental–economic benefits. In contrast to common stereotypes, the composite climate policy will promote the clean transformation of the energy structure and gross domestic product growth, and water scarcity in Shanxi Province will be alleviated under the energy–water nexus mechanism. Relying on complex cross-regional networks, China's economic inequality will be indirectly eased. The economic driving forces of the Yangtze River, Chengdu-Chongqing economic circles, and Shanxi Province will be strengthened, promoting system stability and sustainability. It is recommended that Shanxi Province implement a moderate carbon tax policy while improving production efficiency; the intensity of emissions technology reform can be flexibly adjusted according to actual needs. This study provides evidence to support the implementation of climate policy, which is of great significance for other similar regions looking to solve the dilemma of sustainable development.

Suggested Citation

  • Zhang, Jinbo & Meng, Haoyun & Chen, Liu & Zhang, Yang & Fu, Zhenghui & Xie, Yulei & Guo, Huaicheng, 2025. "Reversing climate policy stereotypes: Evidence from an energy-dependent region and China's major economic circles," Applied Energy, Elsevier, vol. 380(C).
    • Handle: RePEc:eee:appene:v:380:y:2025:i:c:s0306261924024103
    DOI: 10.1016/j.apenergy.2024.125026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261924024103
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2024.125026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhai, Mengyu & Huang, Guohe & Liu, Lirong & Guo, Zhengquan & Su, Shuai, 2021. "Segmented carbon tax may significantly affect the regional and national economy and environment-a CGE-based analysis for Guangdong Province," Energy, Elsevier, vol. 231(C).
    2. Huang, Hai & Roland-Holst, David & Springer, Cecilia & Lin, Jiang & Cai, Wenjia & Wang, Can, 2019. "Emissions trading systems and social equity: A CGE assessment for China," Applied Energy, Elsevier, vol. 235(C), pages 1254-1265.
    3. Sai Liang & Yu Feng & Ming Xu, 2015. "Structure of the Global Virtual Carbon Network: Revealing Important Sectors and Communities for Emission Reduction," Journal of Industrial Ecology, Yale University, vol. 19(2), pages 307-320, April.
    4. Li, Xiaoyu & Yao, Xilong, 2020. "Can energy supply-side and demand-side policies for energy saving and emission reduction be synergistic?--- A simulated study on China's coal capacity cut and carbon tax," Energy Policy, Elsevier, vol. 138(C).
    5. Jiali Huang & Robert E Ulanowicz, 2014. "Ecological Network Analysis for Economic Systems: Growth and Development and Implications for Sustainable Development," PLOS ONE, Public Library of Science, vol. 9(6), pages 1-8, June.
    6. Pang, Jun & Timilsina, Govinda, 2021. "How would an emissions trading scheme affect provincial economies in China: Insights from a computable general equilibrium model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    7. Wu, Huihuang & Yang, Haozhe & Hu, Xiurong & Zheng, Leyi & Li, Jie & Li, Yangfan & Wang, Xian & Ge, Wendong & Zhou, Yuhan & Liu, Ying & Liu, Junfeng & Wang, Yuqing & Ma, Jianmin & Tao, Shu, 2024. "Complementing carbon tax with renewable energy investment to decarbonize the energy system in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    8. Hu, Haisheng & Dong, Wanhao & Zhou, Qian, 2021. "A comparative study on the environmental and economic effects of a resource tax and carbon tax in China: Analysis based on the computable general equilibrium model," Energy Policy, Elsevier, vol. 156(C).
    9. Rodríguez, Miguel & Robaina, Margarita & Teotónio, Carla, 2019. "Sectoral effects of a Green Tax Reform in Portugal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 408-418.
    10. Yang, Yafei & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2022. "Patterns and determinants of carbon emission flows along the Belt and Road from 2005 to 2030," Ecological Economics, Elsevier, vol. 192(C).
    11. Zhang, Runsen & Fujimori, Shinichiro & Dai, Hancheng & Hanaoka, Tatsuya, 2018. "Contribution of the transport sector to climate change mitigation: Insights from a global passenger transport model coupled with a computable general equilibrium model," Applied Energy, Elsevier, vol. 211(C), pages 76-88.
    12. Ajay Gambhir & Mel George & Haewon McJeon & Nigel W. Arnell & Daniel Bernie & Shivika Mittal & Alexandre C. Köberle & Jason Lowe & Joeri Rogelj & Seth Monteith, 2022. "Near-term transition and longer-term physical climate risks of greenhouse gas emissions pathways," Nature Climate Change, Nature, vol. 12(1), pages 88-96, January.
    13. Lin, Boqiang & Xu, Chongchong, 2024. "Reaping green dividend: The effect of China's urban new energy transition strategy on green economic performance," Energy, Elsevier, vol. 286(C).
    14. He, Peijun & Ng, Tsan Sheng & Su, Bin, 2019. "Energy-economic resilience with multi-region input–output linear programming models," Energy Economics, Elsevier, vol. 84(C).
    15. Karatayev, Marat & Hall, Stephen, 2020. "Establishing and comparing energy security trends in resource-rich exporting nations (Russia and the Caspian Sea region)," Resources Policy, Elsevier, vol. 68(C).
    16. Meng, Fanxin & Liu, Gengyuan & Liang, Sai & Su, Meirong & Yang, Zhifeng, 2019. "Critical review of the energy-water-carbon nexus in cities," Energy, Elsevier, vol. 171(C), pages 1017-1032.
    17. Wang, P.P. & Li, Y.P. & Huang, G.H. & Wang, S.G., 2022. "A multivariate statistical input–output model for analyzing water-carbon nexus system from multiple perspectives - Jing-Jin-Ji region," Applied Energy, Elsevier, vol. 310(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Jinbo & Liu, Lirong & Xie, Yulei & Han, Dengcheng & Zhang, Yang & Li, Zheng & Guo, Huaicheng, 2023. "Revealing the impact of an energy–water–carbon nexus–based joint tax management policy on the environ-economic system," Applied Energy, Elsevier, vol. 331(C).
    2. Zhang, Tianyuan & Tan, Qian & Cai, Yanpeng, 2024. "General equilibrium analysis of carbon tax policy on water-energy-food nexus efficiency," Energy, Elsevier, vol. 304(C).
    3. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    4. Qianyi Du & Haoran Pan & Shuang Liang & Xiaoxue Liu, 2023. "Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model," IJERPH, MDPI, vol. 20(5), pages 1-26, March.
    5. Chai, Shanglei & Huo, Wenjing & Li, Qiang & Ji, Qiang & Shi, Xunpeng, 2025. "Effects of carbon tax on energy transition, emissions and economy amid technological progress," Applied Energy, Elsevier, vol. 377(PC).
    6. Weijiang Liu & Min Liu & Tingting Liu & Yangyang Li & Yizhe Hao, 2022. "Does a Recycling Carbon Tax with Technological Progress in Clean Electricity Drive the Green Economy?," IJERPH, MDPI, vol. 19(3), pages 1-18, February.
    7. Haisheng Hu & Wanhao Dong, 2022. "The Goal of Carbon Peaking, Carbon Emissions, and the Economic Effects of China’s Energy Planning Policy: Analysis Using a CGE Model," IJERPH, MDPI, vol. 20(1), pages 1-20, December.
    8. Pan, Yuling & Dong, Feng, 2022. "Design of energy use rights trading policy from the perspective of energy vulnerability," Energy Policy, Elsevier, vol. 160(C).
    9. Chen, Shaoqing & Zhu, Feiyao & Long, Huihui & Yang, Jin, 2019. "Energy footprint controlled by urban demands: How much does supply chain complexity contribute?," Energy, Elsevier, vol. 183(C), pages 561-572.
    10. Li, Xiaoyang & Huang, Guohe & Wang, Shuguang & Zhang, Xiaoyue & Luo, Bin, 2025. "Synergistic Management of Water, energy, and carbon: A case Study from Shandong Province, China," Applied Energy, Elsevier, vol. 381(C).
    11. Jia, Zhijie & Wen, Shiyan, 2024. "Interaction effects of market-based and incentive-driven low-carbon policies on carbon emissions," Energy Economics, Elsevier, vol. 137(C).
    12. Hao Li & Pengru Fan & Yukun Wang & Yang Lu & Feng Chen & Haotian Zhang & Bin Zhang & Bo Wang & Zhaohua Wang, 2024. "Integrated assessment models for resource–environment–economy coordinated development," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 13(3), May.
    13. Ying Zhang & Yingli Huang, 2023. "Killing Two Birds with One Stone or Missing One of Them? The Synergistic Governance Effect of China’s Carbon Emissions Trading Scheme on Pollution Control and Carbon Emission Reduction," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    14. Xu, Qi & Liu, Kui, 2024. "Hero or Devil: A comparison of different carbon tax policies for China," Energy, Elsevier, vol. 306(C).
    15. Colton Brehm & Astrid Layton, 2021. "Nestedness of eco‐industrial networks: Exploring linkage distribution to promote sustainable industrial growth," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 205-218, February.
    16. Wadim Strielkowski & Anna Sherstobitova & Patrik Rovny & Tatiana Evteeva, 2021. "Increasing Energy Efficiency and Modernization of Energy Systems in Russia: A Review," Energies, MDPI, vol. 14(11), pages 1-19, May.
    17. Tan, Xiujie & Sun, Qian & Wang, Meiji & Se Cheong, Tsun & Yan Shum, Wai & Huang, Jinpeng, 2022. "Assessing the effects of emissions trading systems on energy consumption and energy mix," Applied Energy, Elsevier, vol. 310(C).
    18. Ye, Hui & Wu, Fei & Yan, Tiantian & Li, Zexuan & Zheng, Zhengnan & Zhou, Dequn & Wang, Qunwei, 2024. "Decarbonizing urban passenger transportation: Policy effectiveness and interactions," Energy, Elsevier, vol. 311(C).
    19. Zhice Cheng & Xinyuan Chen & Huwei Wen, 2022. "How Does Environmental Protection Tax Affect Corporate Environmental Investment? Evidence from Chinese Listed Enterprises," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    20. Sebestyén, Tamás & Szabó, Norbert & Braun, Emese & Bedő, Zsolt, 2024. "Lokális reziliencia számítása térbeli általános egyensúlyi modell felhasználásával [Measuring local resilience with a spatial computable general equilibrium model]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1222-1253.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:380:y:2025:i:c:s0306261924024103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.